Regulatory Alerts2020-04-27 | Monetary Law Act Order No. 1 of 2020Maximum Interest Rates on Pawning Advances of Licensed Banks
The Monetary Board of the Central Bank of Sri Lanka has issued an Order fixing maximum interest rates for pawning advances granted by licensed banks. The regulation caps interest at 12 percent per annum or 1 percent per month for advances under one year secured by gold jewelry. This cap applies to all new pawning advances and existing facilities upon renewal starting 27 April 2020, providing targeted financial relief to low-income individuals during the COVID-19 economic downturn.
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